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tv   State of the Union  CNN  July 24, 2011 6:00am-7:00am PDT

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phyllis, will yu have connie to be your spouse and live together with her in the institution of mat trau moany? >> folks, we will have to leave it there with you. you are seeing the first same-sex ceremony to take place in this particular manhattan new york clerk's office. that's phyllis and connie, clearly an older couple and probably have been together a long time. right now we have to turn it over to "state of the union" with candy crowley. it's hard to find common ground with nobody budgets. today meetings without movement. the administration's take from treasury secretary, tim geithner. >> it's unthinking the country would not meet its obligation on time. >> then, senior democratic senator, diane feinstein. presidential politics with
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governor tim pawlenty in iowa doing what it takes. >> he's the president. come on out to the lawn of the white house or the microphone and tell us your plan on entitlement reform, and he won't indict because he doesn't have the courage to do it. >> i am candy crowley, and this is "state of the union." late into the night, leaders on capitol hill scrambled to put together a last-minute debt deal, now being considered a two-step plan that would raise the debt ceiling through 2011 in exchange for a trillion dollars in spending cuts. both sides are onboard. but the hang-up is the second increase that will be needed in 2012. before that happens republicans want a special commission to outline future reductions. a no-go at the white house. i spoke with treasury secretary, tim geithner, earlier. >> thank you so much for joining us. >> nice to see you. >> you heard the two-tier plan coming from the republicans.
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let me have the white house take on it. >> let me tell you what we're trying to do, okay? we move the threat of default from the country for the next 18 months. very important we do that. >> through the election -- >> i wouldn't say through the election. this is a hard thing to do, and we take it out of politics. you don't want politics messing around with america's credit. >> too late on that. >> they have taken it too far, frankly. the other thing we want to do is put in place a framework that locks in real reforms, real savings, so we can return to living within our means as a country. that's very important to do. we have to do it in a way that is fair and balanced and we have to force congress to make tough decisions over the next several months, 18 months. we're trying to do both of those things. we have to get congress back to the business of trying to do things to make this economy stronger and getting americans to work. >> does the speaker's plan get
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you there? >> when the president brought them to the house yesterday, we have two paths ahead of us we can choose. one is the framework the president and the speaker have been talking about now for several weeks -- >> which is so far a no go. >> that's the president's preferen preference, still, and we are identifying and putting in place, real savings and commitment to tax reform -- >> let me just, on that point, are you saying -- i mean, the speaker and the president as far as i know are no longer negotiating. is that true? >> no, that is not true. over the course of yesterday, the president was in touch with all leaders and met over the course of yesterday -- >> beyond that early-morning meeting. >> yeah. >> so the president is still actively involved -- >> absolutely. >> in those negotiations? with the speaker? >> yes. they need to agree on something together that will pass the
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house and pass the senate that the president can accept. that's what we're looking for. so there are two paths here. one is the framework comprehensive balance of reforms and the other thing is a process like what senator reid and mcconnell introduced, and it would have a committee with a clear deadline to try and enact reform to achieve objectives within a specified period of time. >> my question is none of those appear to be on the able publicly at this point and the president is still negotiating with the speaker and others, but right now what we know publicly is that speaker boehner has a plan on the table that would take you through 2011, and give you -- lift the deficit by about $1 trillion, and then you have another go around and lift it through 2012. is that acceptable to the white
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house? >> we will do it in two stages. lock in to what they agree to, and then a second stage where congress will agree on something, and revenue and entitlement reform. the key question is what happens at the end of that first stage? what we cannot do, and this is very important, and what we cannot do because it would be irresponsible to leave the threat of default hanging over t the economy. we started this process of working with the congress to get them to raise the debt ceiling to avoid a crisis, and it has taken us seven months, and we're almost at a run way and we cannot put -- >> is that a no? >> it's a no. >> that's what i needed to know. if speaker boehner comes back to you, i think we can agree the house is the most difficult place to get something through at this point, and if the
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speaker comes back and says this deal we're talking about, it's the best that i can get, will you believe him? >> it's been clear for sometime to get legislation passed to avert a default crisis and resolve the fiscal crisis it will involve republicans as well as democrats. they said to me, we will need democrats on the debt limit thing because it will be hard for us. they have known from the beginning they need democrats to pass the house -- >> yes, they will lose conservative republicans. >> what they are all doing now is to figure out what will get votes to pass both houses, because they don't have time left on terms of the president can accept, and that's what they're working on. we're a aaa country. congress is just going to prove they can get this done in the short time remaining, and the
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forces of reason are getting stronger now. there is a lot of political rhetoric and nashing of teeth, but if you listen carefully now, both sides are getting closer. you see the leadership of the republicans saying, we will not default. if you listen carefully you see people coming closing together on the tough choices the country will need. we have different visions for the country, and we're still a divided country in many ways, but we all agree we have to fined a better means and turn our attention to get this country back to work. >> and agreed upon means -- not the means, but the agreed upon goal has been there for a while. let me try and button up where we are on the current boehner proposal, the two-tier proposal -- >> two stage. >> two stage proposal. it's not acceptable in current form to the white house. if that comes to you, if a
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short-term deal defined as not taking you through the election is sent to the president, are you telling me despite all the dire warnings he would veto that bill? >> it will not make it that far. he needs democrats for that to work, and nancy pelosi said she will not vote for that approach and it will not make its way through the senate. that's not a viable option. we can do it in stages, but we cannot believe the threat of default hanging over americans. it's deeply irresponsible. you cannot put that additional burden of uncertainty and fear on average-working americans, and on the american businesses going forward. >> timing seems to be of great moment at this point. the speaker said he wants a deal before the asian markets open, which is 9:00, 10:00, eastern time today. what will happen -- i am told
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that you warned congressional leaders yesterday morning of what might happen in the asian markets if no deal is struck by then. what would happen? >> well, if you look at markets around the world over the last few weeks or so they still show a remarkable degree of confidence that america will meet its obligations as it always have and will find a way to make our long-term fiscal challenges. that will start to erode the longer we wait. >> today? >> we can't tell. >> you come here confidently today saying we will get a deal as to more of the dire warnings we have had if we don't get a deal. what i would like to know in the remaining couple of minutes, are you basing on the process that we're near, or are you basing it on trying to calm the markets? >> it's unthinkable we would not meet our obligations.
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>> it's not going to happen? >> no, they all recognize it's very important to do, and that's why i am confident. again, if you sit in the room with them as they have done and you listen to them talk about how to solve this, you hear people starting to come together. they are much more realistic about what is possible and they recognize we have to get it done that >> based more on hope that you are going to get it done? >> yes. >> let me ask you about the economy. the first is there are a number of private forecasters who have lowered their growth estimates for the second quarter. will the second quarter be lower than the first? >> it's possible. it's hard to tell. the second quarter is behind us. >> you think the second quarter might be lower? >> yeah, first time to be at 2% or slightly lower. >> you think the third quarter should be better? >> should be better. >> how much better? >> well, the private
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forecasters, the best forecasters in the country, they think the second half should be around 3%, stronger than the first half. >> 9.2% unemployment. at what point do you think we will begin to see a fairly good downward projek tree on employment, by november of next year, as we know is an election date, do you see unemployment below 9%? how much below? >> you need growth for americans to get back to work. faster growth than in the first half of this year. there's no reason that should not the happen as long as congress lifts this fear as a default crisis. >> so you see unemployment with an eight in front of it instead of a nine? >> depends on how fast the economy grows. it's going to take time for us to get the unemployment rate down, but with stronger growth, the unemployment will start to
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come down again. >> somewhere in the 8% range by-election time? >> you cannot know. depends on the choices congress makes. >> thank you, tim geithner, appreciate you being here. what will it take to get a deal? that's next. hey can i play with the toys ?
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joining me now, congressman tom price of georgia heading up the republican study group that formulates policy for republicans on the house side. you heard congressmen from the treasury secretary that says the plan on the table that speaker boehner is talking about is unacceptable to the white house. your reaction? >> at 9:15 on sunday morning, that may be the case. let me, if i may, stipulate three facts. this debt crisis is not being driven by politics but by math. the aging of our population
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dictate that we need to live up to the debts that we made but struck chauly change and fundamentally change the way washington spends money. secondly, it's house republicans in a bipartisan activity last week, and house republicans on two occasions this year, once in the spring and then last week with our cut cap and balance, the short-term decrease in spending right now, and mid-term, and then long term the structure for a balanced budget amendment that your network says 66% of the american people want, and third, sadly, the senate democrats and the president, even though they continue to complain have yet to live up to their responsibility and put a specific proposal on the table. when the president put a budget on the table the senate democrats voted it down 97-0. you have to wonder who is not willing to compromise? >> again, we are where we are in
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the process, regardless of who left what on the table at what particular point, so what is the next move for the speaker and for republicans on capitol hill with the white house saying they don't -- what they object to, as you know, is they want this issue settled at least through 2012, because next year is election year, and if we think it's about politics now next year would be worse. are you opposed to taking this thing through 2012 so it's not dealt with again until 2013? >> not at all. that's why we passed the budget earlier this year because we wanted to begin the discussion at a time when cooler heads might prevail. now we're up against a remarkable deadline. what we are trying to do is make certain we can get through the deadline in a way that brings about structural reforms that just have to be put in place so we don't find ourselves in the
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remarkable crisis again. >> so 2012 -- >> if we can reach that deal, we're there. >> so that in particular is not objectionable to you? >> we're okay with an agreement, a solution, and we're not interested in a deal, but a solution that changes the way that washington does business so that we correct the challenges that we have right now and get ourselves on a path to pay off our debt and to balance our budget. it's what the american people demanded in the elections last november. >> you republicans do make a lot of what the voters said in the last election, saying we want washington to spend within its means and etc., etc., but we're also seeing poll after poll after poll that shows americans want compromise, and they think there should be something on the revenue side, and you are saying no, so why are you ignoring the polls and saying this is what
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the elections said? >> well, that's not true. we dealt with all the corporate loopholes that the president wants to do away with it. our budget did away with those but did away with them in a manner that allows for tax reform so you get the whole situation fixed and solved. we're not interested in doing bites at the apple or nips at the side, because that is not what will get this crisis solved. our budget took away the corporate loopholes and broadened the base for tax reform and lowered the rates for individuals so we can get this economy growing and creating jobs, because that's the key, we have to grow our way out of this challenge. >> speaking for yourself or the leadership if you care to, if you cannot get these things that you have outlined, major structural changes somehow within the next eight days, and i realize it has been going on for seven months, but the reality is you have eight days, if you can't get that, will you allow the u.s. to default, you
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personally or the leadership? >> the u.s. won't default, because default means that you don't pay your critters -- >> without raising the debt ceiling, then. would you allow august 2nd to pass without a vote to raise the debt ceiling? >> that's not what we desire at all and that's why we passed the two pieces of legislation and have seen no part on the senate. it cannot happen and must not happen. we have more than enough money to come in to be able to pay those individuals. the question is what doesn't get paid? that's where the president has, i think, sadly put fear into this equation and saying that seniors won't get social security checks or active duty military won't get paid, and there's no reason for that kind of discussion because there's enough resources to get us through a short term.
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and this is all about math and arithmet arithmetic, so you have to solve the crisis, and we have been ready, and we hope we have a willing partner on the other side to solve the challenges. >> if your speaker comes to you and says here is the best deal i can get and it does not include some of the things you are talking about, major structural changes and etc., and he says as he said publicly a lot of times, we cannot allow that august 2nd deadline to pass, will you vote with your speaker or are you prepared to vote against raising the debt ceiling if you don't get what you want? >> again, the house republicans in a bipartisan fashion last week already voted to raise the debt ceiling -- >> but the senate voted to table it. so we're not dealing with that. that's not reality. >> the reality is the senate has not lived up to the responsibility. that's where the ownious ought to be. if you don't like the reductions
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in spending we put on the table, what do you like? if you don't like the limitations on government spending we put on the table, what do you like? if you don't like our balanced budget amendment, what kind do you want for washington spending? that's where we need to be. it's not an ideal of what we have passed. they have not put a plan or proposal on the table. >> thank you for joining us. we appreciate it. up next, a check of the day's top stories. with roc®retinol and antioxidants. lines, wrinkles, and sun damage will fade. roc multi-correxion. correct what ages you. i don't know. the usual? [ blower whirring ] sometimes it pays to switch things up. my - what, my hair? no. car insurance. i switched to progressive and they gave me discounts
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time for a check of today's top stories. norwegians gather this morning at a church in oslo the mourn the killed people. the accused assailant, anders behring breivik, has confessed to the attacks. the suspect believes the attacks were horrible but necessary. six people are dead and four others injured after a birthday party shooting at a texas roller skating rink.
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police in the town of grand prairie says the gunman is among the dead. the shooter was the guest of honor celebrating his birthday. and then a young woman alleges she had a unwanted sexual act with the senator. hundreds of same-sex couples getting married today in new york. this is the first day that same-sex marriages are legal in the state. the weddings began at midnight. new york is the sixth and largest state to legalize same-sex marriage. those are today's top stories. coming up, opposing the views on gay marriage, diane feinstein on her fight to repeal the defense of the marriage act, and then the defender of the marriage
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joining me now, democratic senator diane feinstein of california. if i can recap for you this
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morning on the debt crisis, the treasury secretary has told us the two-phased plan is unacceptable at the white house because it does not bring the debt crisis past the next election, and we have heard the speaker say, you know, we're perfectly willing to go ahead on that plan without the help of democrats on the house side, and that puts it back in the senate. >> right. >> so i want to gauge your optimism here. you have been around washington -- you and i have both been around washington for a while. are you more or less optimistic that we will come up on august 2nd and have a deal? >> i am trying to understand the real position -- i represent 37 million people. california's bigger than 21 states in the district of
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columbia put together. the people in my state depend on programs that the republicans want to take a meat axe to, ssi and social security and medicaid and medicare. we need to know how it's done because it's possible to cut back the programs, but it's going to take some real care and concern to see that it's done so that it hurts people the very least. >> so you can see an entitlements cuts, it's just the nature of the cuts we're talking about? >> it's the nature of the cuts and when and how they come, and it's also, i think, how you fund them. we would probably take three parts cuts to one parts r revenues. what we won't do is take billions in cuts with no cuts in
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rev news. we believe it should be a fair share plan, not just the people who are poor and dependent on these programs. that's not unreasonable. >> but for seven months we have been having this argument. >> that's right. >> as you know, it has been going on for seven months and everybody can argue who is to blame, but the reality is we're up against a deadline here, and the republicans are determined to go ahead. where do you see this coming out? >> i can tell you in the senate, but the house i cannot quite figure out. >> that's okay, they can't figure you out either. >> the members are bipartisan that support -- >> three republicans and three senators that have come up with the cuts in the revenue. >> that's correct. the revenue enhancements take sense, and they would take the simpson bowls commission tax
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reform in it. it's a big, big step forward for the senate. if that could be wrapped into a proposal that would provide the length of time to do it and do it carefully, i think you have an arrangement. but i think this business of -- you know, here you have two months of negotiation with the vice president, and the republican walked out. you had hours of negotiations with the president, and the republican walked out. they said no to simpson bowls, and they said no to the -- >> to be fair, there were parts of simpson bowls that democrats also said no to. we get down to that. because our time with you is short i want to move on a little about that let's say you are more or less optimistic that we will get the debt ceiling done and move on to a different subject?
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>> i am neither. this is the first time in 19 years that i feel that something that can be done simply is being held hostage for a very high stakes game. >> you have a new bill you call the respect for marriage act, which would undo the defensive marriage act which defines marriage between a man and a woman and disallows same-sex couples from having federal benefits. >> that's right. >> and people will point out that 39 states have banned same-sex marriage. why is this the time to do this? >> six states plus the district of columbia now support same-sex marriage. marriage is also a creature of the state for legal reasons, all family matters are done by state law. what the defensive marriage act
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did was in 1993 or 1994, it was passed and it said you can have none of the federal rights or benefits that come with a state same-sex marriage. in my view that's both wrong and unconstitutional. spousal benefits, and certain inheritance rights, all of those things, it's just plain wrong to do it. if a state inacts same-sex marriage, that state should be able to be treated like any other state. we have produced this bill and have 27 cosponsors and had the first hearing this week. i believe it may be a long march, but i believe it's going to happen. >> when you look at this, and you look at what is happening in new york today, do you think that over time this will just be a generally accepted practice? is that where you are headed despite what have been some most
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recently in state votes people turning down the idea of same-sex marriage? >> yes, i think so. as time goes on what i find is more and more people have gay friends, gay relatives, people are much more forward with their thinking about this now, and i think they are much more open to it, and the polls are showing a change in attitude, and the problem here is that if a state says, yes, we're going to count the same-sex marriage, then all the rights and benefits of ought to be due to that relationship. >> federal benefits? >> exactly. >> let me turn to libya. france said, listen, if gadhafi steps down he can stay in the country. the u.s. also seems to be softening its position. do you think that's a good idea? >> if -- let me be dan kae cand.
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if you are not going to take him out -- what i want is him out of office. if he lives in a house and behaves himself, that's not a problem for me. if he leaves the country, that's not a problem for me. but to continue to run this country in the way in which he has, with the faif raw tizam, and everything else, that's a big problem. >> but we won't know if he is out of office and sitting there and not causing problem? >> yes. >> thank you, and we hope you come back. >> thank you. up next, catching up to republican candidate, tim pawlenty, who grew up playing hockey and is doing whatever it takes to get the votes.
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iowa, the first contest of the primary season and site of the aims straw poll next month is a land of opportunity for campaigns looking for traction, which brings us to tim pawlenty. the minnesota governor is a charming candidate who has not moved the meter, polling in the low single digits nationally, he run as distant third behind romney and michele bachmann. he seemed like the strongest contender, his vote rides on iowa. >> i face an opponent experts say can't be beat. you fight. you bleed. you prevail. join me and prove the experts wrong. >> friday, an encouraging word from an activist, paw len tea
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placed behind romney but ahead of bachmann. he is reportedly spending about $1 billion and getting support. it's a rare chance to spark a campaign in need of fire. tim pawlenty in the hawkeye state next. act my age? -why? -why? -why?
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governor thank you for joining us. the debt ceiling. i think we are on plan c, d or e at this point. if you are president you are on the hot seat it seems to me. president obama has to come up with a deal or he gets blamed -- >> he should get blamed. he should get blamed. >> but you're a republican with your stated values. how would you get a deal at this moment? >> i have been a supporter, if i was president, long-term constitutional amendment to balance the budget, and peg spending so they can't just raise taxes -- >> but that's not going to happen -- >> you are saying if i was president, what would i push for? that's what i would push for. >> i think we know what you would push for, but where would you compromise? cut cap and balance is not passing the senate. you have to come up with
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something. my question is, where do you -- where's the give here, if there is? you have to get it passed the senate and that is controlled by democrats? >> how did we get here? president obama ran up the deficit to $1.5 trillion -- >> can i interject that he inherited two wars and an on going prescription drug plan that was passed under the bush administration and a recession that went deeper and deeper. >> the two wars were taking place under bush at a larger level. so when president bush took office there was a $500 billion deaf sfici deficit, and now it's $1.5 trillion he looked the american people in the eye in march of 2009 after he new full well about the wars and after he new full well about the economic collapse and after he knew about the medicare part d prescription
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drug expansion, and he looked at the american people in the eye and said i will reduce the deficit in half in my first term, and he tripled it. he needs to be held accountable for that. we are where we are, and we need to move towards reductions and spending. i believe congressman boehner and others can find a way to do that. it's gut check time. and if you say we're in a tough spot. if they are not going to do tough cuts, then when is it going to be? after the next election, we might fix that. the time is now, and as important as the debt ceiling is, the other issues of whether we're going to fix the spending problems of the country also deserve attention, and if not now, when? one example would be, what are they going to do to fix
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medicaid? it's bankrupting states and running the government over the cliff financially, and where is the president of the united states on the most pressing financial challenges of the country on entitlement reform? where is his specific medicaid reform proposaproposal? where is his social security reform proposal? the answer is he does not have one. he's ducking and bobbing and weaving, and he's not leading and that's why he needs to be removed from office. >> apparently with speaker boehner he has talked -- >> well, if you are the leader of the free world please come to the microphone and quit hiding in the basement with your proposals and come up and address the american people? is he chicken? >> is he? let me have you answer that question. >> i love paul ryan, but we should not have to have a
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congressman from wisconsin leading the debate on the nation's financial challenge in one of the most historically moments in the country's history. the president should be standing out courageously and leading on these issues specifically, and you cannot find him -- >> he has agreed to do that -- >> when? >> i want to move on from this, but he has agreed to do that in private, but he says the problem is the republicans won't -- >> if we can do that in private, i can have a beer with my neighbor over that. he's the president and come out of the basement and to the microphone and tell us your plan on entitlement reform, and he won't do it because he doesn't have the courage to do it. >> all of these things you are talking about, medicare and medicate and cuts at the pentagon cannot get done between now and the time of the debt ceiling. let me see if has a wrap up question, you would let the
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timeframe expire? >> they will have to fix it. we don't want to default. the united states of america should not default. but the republicans and the president need to show the country and the world and the markets, a, that they can fix the problem, but structural, permanent fix or a step of real progress in that regard. and we'll see if they can do it. if they can't -- he was the one when he was a u.s. senator, barack obama said it's an example of failed leadership. now he's the leading champion of raising it. again, another sophistry, another piece of fake rhetoric from him. he made all these big promises to the country, all these big speeches, all these big -- things he said he's going to do and he hasn't donny of it. we've had enough of it. we need results. the country is singing, the country is drowning. we need real leaders. that's why the emphasis on entertainment and rhetoric is not the right direction for the
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we are here with former minnesota governor tim pawlenty. the first legal gay marriages
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will take place in new york. they have been in place here in iowa for more than a year. what has been the harm of that? >> well, from my standpoint, i don't think all domestic relationships are the same as traditional marriage, candy. i think a marriage between a man and a woman is something that should remain elevated socially, culturally, practically, legally, morally in our society. >> i understand your position on it. many people have that position. i'm wondering if you see that there has been harm to iowa, the state of iowa or will there be harm to the state of new york because they've legalized gay marriage? >> i wouldn't phrase it that way in the sense that -- i think there's just a difference of opinion about whether all domestic relationships are in the eyes of the law and otherwise going to be the same as traditional marriage. i don't think they should be. >> why? in particular, what should gay couples, lesbian couples not
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have that straight couples do? >> well, i think we have a long-standing practice. it's social, it's legal, it's cultural, that says a man and would hand are joined together for obvious reasons, in relationship, in marriage, in probing asian, in raising children, in their function in society. i'm not at the point, nor will i ever be at the point where i'm going to say, you know what? that really is not special. it's not any different than any other domestic relationships we can imagine or assemble. >> there's a difference between saying, look, i'm never going to get there and saying there is harm to the state of iowa or society in general. >> i think when society devalues traditional marriage by saying all other domestic relationships are the same as traditional marriage you dilute and devalue marriage. >> it's something culturally or
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religiously you don't believe that or won't believe that sf. >> it's certainly a cultural and social and moral issue. it also has practical effects. i think obviously a man and woman together are the traditional family. that's how children are born and raised traditionally. >> there's plenty of single parents. >> of course. >> plenty of gay couples have children that have adopted or otherwise had surrogates, whatever happens. are those not families? >> there are many examples of single parents and others who heroically and lovingly raise children. obviously an example would be somebody who lost a spouse and is working two jobs and has children. so i'm not saying that there can't be single parents. there obviously are single parents who are wonderful parents. i'm just saying we want to maintain traditional marriage, elevate it in the eyes of the law and our society. it is not the same as other domestic relationships. >> let me bring your attention
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to something rudy giuliani told us last week. we were talking about gay marriage. he's opposed to it, pro-civil union. he said of the new york move and other states, i think the republican party would be well-advised to get the heck out of people's bedrooms and let these things get decided by states. do you think it's time for the republican party or members of the republican party such as yourself to say i'm never going to agree with this, but you know what? we got a lot of our plates. let this go, let the states decide and move on. >> clearly the main focus for the country is economy and jobs. these issues of being pro family or pro traditional marriage or being pro life are important. they're important to me. >> most of the polls that we now see are that the majority of people favor gay marriage. so does the republican party
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look like it's behind the curve? does it risk looking intolerant? >> every time this issue has been put to the people, even in california, the people supported traditional marriage. so this notion that the people broadly don't support traditional marriage, that hasn't been the case when it's been put to a vote. >> do you care if there are same-sex couples who have gotten married? does that truly bother you or is it just as a general principle? >> look, to me it's just -- the idea that we're going to have traditional marriage be viewed in the eyes of the law and society as no different than other domestic relationships i think is a bad idea. we want traditional marriage to remain elevated legally and socially. >> because? >> because it plays an obvious and unique role in our culture and society. >> man and a woman having a child is what you're talking about? >> of course, and a man and woman in a relationship. to say that is somehow the eal